The food and beverage industry has always been a fundamental part of the economy, but during the pandemic it was declared “essential.”

Over the past few years, it also has been an industry in flux amid change and challenges, managing a pandemic, facing the headwinds of inflation and innovating as more purchases shift online. F&B companies have diversified sourcing, boosted revenues, increased wages, sometimes revamping technology and often, although not as much as possible, tapping tax benefits and incentives. Revenues are up, optimism is on the rise and change is everywhere even as supply chain struggles and a labor shortage persist. With the peak of the pandemic behind us, executives are facing a new era and eyeing the future. It’s a watershed moment for the industry with companies and customer habits changing, sourcing becoming more flexible, data becoming a driver of efficiency, M&A going strong, and efforts to innovate and boost margins as competition sharpens.

We can’t think of a timelier moment to present Marcum’s first Food and Beverage industry survey, providing a view of the state of the industry from priorities to problems and solutions. We would like to thank the many executives who provided data and comments as recently as October. We are heartened by the optimism, signs of growth and solutions even as we are aware of ongoing struggles to find skilled labor and tame the dragons of rising costs, dwindling supplies and labor shortages.

FROM OUR RESPONDENTS

The F&B survey asked our respondents their thoughts on growth opportunities and greatest challenges. Here’s a snapshot of their thoughts.

Key Findings

Revenue

71%   Reported revenue rose from 2021 to 2022

69%   Project revenue rising over the next 12 months

64%   Have a positive/very positive outlook for the industry over the next year project

 

Attracting & Retaining Labor

45%   Reported workforce growth over the last 12 months

46%   Project workforce growth over the next 12 months

49%   Anticipate securing skilled labor to be among the greatest challenges of 2022/2023

72%   Plan to increase average compensation including benefits over the next 2 years

58%   Are increasing wages to attract and retain skilled labor

38%   Are offering bonuses to attract and retain skilled labor

54%   Are planning to improve work life balance

 

Tax Opportunities

34%   Are NOT taking advantage of various tax incentives

60%   Are NOT taking advantage of employee retention tax credits

 

Challenges & Strategies

69%   Anticipate inflation, rising commodity and other costs among the greatest challenges

72%   Place product/service expansion and innovation as their top business strategy

32%   Place geographic expansion as their top business strategy

63%   Say the pandemic permanently changed the way they manage their supply chain

62%   Plan to address inflation in the coming year by reducing expenses

57%   Plan to address inflation in the coming year by raising prices

55%   Are not confident that their technology is protected from cyber threats

52%   Are unsure their IT/technology can handle current and future goals

66%   Experiences shipping delays as a global supply chain issue

35%   Place geographic expansion as their top business strategy

View Survey Results

Contacts

Louis J. Biscotti

Louis J. Biscotti

Food and Beverage Services Leader

  • Assurance
  • Melville, NY
James  Aspromonti

James Aspromonti

Partner

  • Assurance
  • Melville, NY
William J. Austin

William J. Austin

Director

  • Tax & Business
  • Boston, MA
Ilyssa  Blum

Ilyssa Blum

Partner

  • Assurance
  • Fort Lauderdale, FL
Michael  Buchheit

Michael Buchheit

Partner

  • Assurance
  • Philadelphia, PA
Timothy R. Croushore

Timothy R. Croushore

Valuation, Forensics & Litigation Leader
West Coast

  • Advisory
  • Los Angeles, CA
Daniel  Dowell

Daniel Dowell

Office Managing Partner

  • Assurance
  • Tampa, FL
Leonard  Gordon

Leonard Gordon

Partner

  • Assurance
  • Los Angeles, CA
Randy  Harrison

Randy Harrison

Partner

  • Tax & Business
  • New Haven, CT
Thomas E. Lisi

Thomas E. Lisi

Office Managing Partner

  • Tax & Business
  • Providence, RI
Waqqas  Mahmood

Waqqas Mahmood

Director - Strategic IT Consulting

  • Marcum Technology
  • Rockville, MD
Alan  Markowitz

Alan Markowitz

Partner

  • Assurance
  • New York, NY
Patrick  O'Reilly

Patrick O'Reilly

Principal

  • Advisory
  • Portland, ME
Jeff  Pera

Jeff Pera

Regional Managing Partner

  • Tax & Business
  • San Francisco, CA
Natalie  Verbanac

Natalie Verbanac

Partner

  • Assurance
  • New York, NY